Correlation Between DONGKUK TED and Hironic
Can any of the company-specific risk be diversified away by investing in both DONGKUK TED and Hironic at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining DONGKUK TED and Hironic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DONGKUK TED METAL and Hironic Co, you can compare the effects of market volatilities on DONGKUK TED and Hironic and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in DONGKUK TED with a short position of Hironic. Check out your portfolio center. Please also check ongoing floating volatility patterns of DONGKUK TED and Hironic.
Diversification Opportunities for DONGKUK TED and Hironic
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DONGKUK and Hironic is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding DONGKUK TED METAL and Hironic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hironic and DONGKUK TED is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on DONGKUK TED METAL are associated (or correlated) with Hironic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hironic has no effect on the direction of DONGKUK TED i.e., DONGKUK TED and Hironic go up and down completely randomly.
Pair Corralation between DONGKUK TED and Hironic
Assuming the 90 days trading horizon DONGKUK TED METAL is expected to generate 0.47 times more return on investment than Hironic. However, DONGKUK TED METAL is 2.12 times less risky than Hironic. It trades about 0.01 of its potential returns per unit of risk. Hironic Co is currently generating about -0.01 per unit of risk. If you would invest 645,000 in DONGKUK TED METAL on October 15, 2024 and sell it today you would lose (2,000) from holding DONGKUK TED METAL or give up 0.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DONGKUK TED METAL vs. Hironic Co
Performance |
| Timeline |
| DONGKUK TED METAL |
| Hironic |
DONGKUK TED and Hironic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DONGKUK TED and Hironic
The main advantage of trading using opposite DONGKUK TED and Hironic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DONGKUK TED position performs unexpectedly, Hironic can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hironic will offset losses from the drop in Hironic's long position.| DONGKUK TED vs. Tamul Multimedia Co | DONGKUK TED vs. YG Entertainment | DONGKUK TED vs. Kaonmedia Co | DONGKUK TED vs. MEDIANA CoLtd |
| Hironic vs. Mobile Appliance | Hironic vs. Samji Electronics Co | Hironic vs. Wireless Power Amplifier | Hironic vs. Shinhan Inverse Silver |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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